Pay Off Debt–Get Rock Hard Abs!
Posted by michelle on Dec 29, 2012 in Eliminating Debt | 30 comments
It’s weird how when you clean up one area of your life, everything else seems to fall into place. Since the beginning of our personal debt-chasing process, Jeff and I have noticed something quite remarkable about all the other areas of our lives. We’ve begun to exercise more regularly, we eat better even though we’re spending less on groceries, and we’re *gasp* making our bed every day. That last one sounds so funny, doesn’t it? Who cares if we make our bed, right? Well, the bigger picture is that we’re taking much better care of every room of our house. We have decluttered so much, but there’s still more that we feel we could purge. I’ve given away several pairs of shoes, sold a few, and threw away even more. I’ve done the same with old kids’ toys, clothes that don’t fit anymore, and all the other stuff that was cluttering my house and my mind. If you read a lot of personal finance blogs, you may have noticed that a lot of people start out writing about debt eradication only, but soon branch off into also talking about the other goals in their lives they’re now tackling. I know that someone reading this sort of a blog is probably *mostly* interested in hearing about my debt progress, but I can tell you that an accumulation of debt is a lot of times just one symptom of a much bigger disease known as letting go.
Looking around our house today, you wouldn’t think we ever had an issue with overspending. In fact, I could sit here and tell you that it was all medical bills for ourselves and our children or the fact that my husband’s bonus was canceled at his job. I could tell you some sob story about the furnace and the AC both going out within months of each other, or that we are still paying over $350 a month for a 401k loan we stupidly took out years ago. I could tell you that we fell into a mess and that it could happen to anyone, but those would all be lies. Actually, all of those things did happen. The medical bills? We paid some off with, you guessed it, credit cards and the rest we’ll be making $140/month payments on til May. The bonus program at my husband’s work really was cancelled last year. All of these misfortunes could not have been seen, but the costly repercussions could have been prevented. We were naive and carefree. We were living minute-to-minute instead of being prepared for the what-ifs. We had no savings, no emergency fund, and we had borrowed from our only retirement account years ago, leaving much less than we should now have in our 30′s. It is embarrassing to admit these faults and our past ignorance, but this is our truth.
This year that was almost completely devoted to getting our finances on track is now coming to a close. I’m now proud to tell you that we have an…
- Emergency fund. It’s only $1000 since we are also climbing out of debt, but we will be beefing that up in the Spring.
- Our retirement account is still smaller than it should be, but we are contributing a fully matched 4% of Jeff’s salary to the pot and it will be bumped to a fully matched 6% this coming Spring.
- Our credit card debt has gone from almost $22,000 when documented on January 22, 2011 down to a much more manageable $6,300 all on one credit card with 0% interest.
- We refinanced our home in October and will be saving $50,000 over the life of our loan.
- We still have one car payment, but are expediting our payments and will have it paid in full by Summer 2013.
- We have gotten rid of all of our movie channels and don’t even miss them.
- We got our providers to lower the monthly fees on all of our services.
- We now plan our meals and are saving a bunch of groceries.
All in all, we are slowly but surely cleaning up every square inch of our finances. We have come this far with patience and persistence, never even seriously considering a drastic step like declaring bankruptcy. We know folks that have ended up such a hopeless situation that bankruptcy seemed like the only option, and we are thankful that we were able to catch ourselves before this happened. We understand that bankruptcy can serve as a safety valve to people who have their life tied up in a personal business, but it will certainly destroy your credit and make your financial situation challenging for years to come.
Not only are our checkbooks looking much healthier, but our outlook on life is as well. It’s funny how changing this one aspect of my life has opened me up to fixing everything else! If you are just getting started on your debt-free journey, please believe me that you will get there too. It’s not a race. Some people will get there faster, and others will eliminate a bigger amount than you had, but it doesn’t matter where you started. All that matters is that you are taking control of your life. You are telling your debt that you are in charge now. Having been pregnant a few times, I can tell you there are definitely some similarities in how this journey feels inside me. There is a little bit of sacrifice in all of this. Maybe you have to give up an expensive habit or can’t go out as often. Maybe for you, having a healthier financial life means seeing your friends and family less. It is often a long, hard road, but it is doable. It feels like just yesterday I was so worried about my future. Today, we still have a ways to go, but I can see the end of the road. At the end of my road, there isn’t a yacht or a fancy new house. There isn’t even a car newer than 9 years old. But there is comfort and stability. There is security for my family, college savings for my children, date nights for me and my husband, and freedom from the heavy burden of credit card debt.
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I know exactly how you feel and what you mean! We are definitely improving in a lot of areas in our lives as well, and it’s great!
Michelle recently posted..A Jar of Pennies…Planning My Future Budget
I am sure that peace of mind is better than anything you could ever buy. Congrats to you on contining to make yourself a priority!
Awesome job in 2012 guys. You really made a lot of progress in all aspects of your financial life.
Sean @ One Smart Dollar recently posted..10 Best Jobs for College Students
You guys have done an awesome job
All of the debt will be gone before you know it!
Lance @ Money Life and More recently posted..Personal Finance Round Up, Mentions and Carnivals #36
Sadly, paying off my debt didn’t make me a neater person! But I agree that life is tremendously easier when you’re not stressing about how much to pay on credit cards and whether or not you can afford something.
I now budget for everything and it’s no longer a surprise when I get the bills each month.
Kay Lynn recently posted..Hoppin’ John Facts & Recipe
Great job on your debt repayment! It will definitely feel awesome when you make those final debt summers. What are your plans then? Are you going to tackle your mortgage? Work on building a huge savings?
Great job and happy new year!
Holly@ClubThrifty recently posted..Tips to Save Money During Winter
I definitely think that once I started cleaning up my financial “mess”, I also started caring more about other areas of my life (having a cleaner house, making better meals, taking better care of our “stuff” so that it lasts longer and saves us money by not having to buy new “stuff”. I’m not sure that’s true for everybody, but like you said, having financial peace of mind certainly made me more relaxed and happier in general.
KK @ Student Debt Survivor recently posted..Our Son Is Clueless About Student Debt-Help!
That’s so awesome! You guys have done so much in such a short amount of time!!! And the side effects aren’t half bad, either.
femmefrugality recently posted..Play with Free Virtual Makeovers
You have made such progress! It must feel great to look back and see how far you have come!
Melissa recently posted..Our Plan to Make Japanese School a Reality Again: A New Challenge for 2013
Hmm, I never thought about it before I read this but we’re the same way. Since we got on the same page and really got our fiances together we also started seeing improvements in other areas of our lives. I think b/c we weren’t so stressed anymore. Yes we still have mounds of debt but a clear plan about what we have to do about it. You guys have accomplished so much, congrats!
Catherine recently posted..Ensuring You Have Total Control Over Your Finances
I’ve also noticed the same things you did. Once I started running and eating clean, I started working more, cleaning more, and trying harder. I don’t know what it is, but once you apply yourself to one thing, you just seem to do everything else better too!
Cassi recently posted..Debt Q&A Day: How Can I Stop Collectors from Harassing Me?
I totally agree. Once I made a budget, got rid of my student loan, and really starting on track with my finances, and was less stressed, less worried, and just generally had a better outlook on life.
Mo’ Money Mo’ Houses recently posted..Weekly Link Love: I Already Miss Christmas Edition
but you didn’t mention how i can have abs like that statue!
Kathleen @ Frugal Portland recently posted..Frugal Portland Gift Exchange Results
It’s funny how discipline in one area of our lives translates to success in other areas. Great job on your goals.
CF recently posted..Updates: Dec 23 – 29
It really is inspiring to see how much you guys have accomplished this year! Seriously, you should be really proud of that and I hope to be following in your footsteps in 2013.
DC @ Young Adult Money recently posted..Best of Young Adult Money: 2012
It is quite amazing how discipline in one aspect of our lives has the same affect in other areas without us even realizing it.
Congrats on the great success in 2012; I hope that 2013 is just as prosperous. (I think somebody will be debt free soon! yay).
WorkSaveLive recently posted..How to Start and Use the Cash Envelope System
Sometimes the journey can seem so painful as you’re going through it, but when you look back at what you accomplished you know each small step was worth it! I went though a lot of similar things, and am still learning and trying to get back on my feet. Continued success in 2013!
Budget and the Beach recently posted..13 Ways to Start the New Year Right
Great job with the credit card payoff. I’m sure you’ll get rid of the last 6000 in 2013. Happy New Year!
Midlife Finance recently posted..Getting A Loan: Fast
You two have had an awesome year!
BTW, I’m a little peeved. I didn’t tell you that you could make that statue of me and post it on your blog. The nerve!
Here’s to a great 2013 for See Debt Run!
AverageJoe recently posted..What Did We Learn in 2012? (…and a look forward into 2013): Two Guys and Your Money Episode 24:
Your feelings of living a better life reflects the same changes that I went through when I repaid my consumer debts and student loans by becoming very frugal and getting a second job. Life is really good because you get healthier and happier by spending less.
Goldeneer recently posted..Experiences Same As Consumer Goods
What a year! It’s so cool to see someone make the decision to rock their finances, and then run with it the way you two have! Really excited to see your debt free post in 2013!!!! YOU CAN DOOO IT!!!!!
Jacob @ iheartbudgets recently posted..5 Reasons To Start A Budget For 2013
You have accomplished a lot in 2012 to be proud of! I can also agree that when I had decided to commit to getting my finances in order and saw progress, it extended to other areas of my life.
K.K. @ Living Debt Free Rocks! recently posted..2012 Flashback & 2013 Fast Forward
I love this post, and you’re so right. It’s like in accepting that we’re not handling our money right, we open ourselves up to admitting that other areas of our lives aren’t going right either. Getting started on one area snow balls into looking after other areas as well. You guys have come such a long way this year, it’s awesome
All the best to you and your family in 2013!
Cassie recently posted..Monthly End Recap – December 2012
Love this–you guys are awesome! I agree about fixing one thing only to have others fall right into place behind the first thing. Once I cleaned up my financial habits, it was strangely much, much easier to get better with other habits as well!
The Happy Homeowner recently posted..2012 Hits and Misses
Congrats to both of you! Minimalism brings clarity and abundance of inner happiness.
Shilpan recently posted..How to Tap Dance to Work
This is so true. I think people resist tackling their problems because they view them as daunting and almost impossible. Change is scary, but once you see progress in something that you’re putting more effort into, it makes you realize how much is possible in bettering your entire life. When you start exercising a little every day, you realize its not as hard as you thought to change your habits and in turn begin to eat better, once that seems easy you take on other things like keeping your house neat or starting on an improvement project. Starting is the hardest thing, but once you gain momentum it seems like anything is possible!
I love this. And yes, I believe when you clean up one area of your life, other things naturally follow. I’ve been a financial advisor for 20 years and watched clients go from scared to confident once they regained control of their finances. It’s amazing to watch from the outside and clearly it’s even more powerful to the individual. Great job!
Shannon @ The Heavy Purse recently posted..2013 Financial Resolutions: Becoming Financially Fit
Michelle, great site! Love this post too. We’ve just started on our journey to debt free and already, just by having a plan in place and working it for a week or so, we feel so much better. Can’t wait to see how it feels at your stage of the game!
Great tips to keep in mind Michelle! I know it’s really devastating to suffer from huge debt and things get harder over time. I guess the lesson here is to control ourselves from over spending and learn to prioritize. Filing for bankruptcy might be a good choice to save financial credibility but it’s important to take advises from expert for possible better choices to choice on. And you’re right, positive outlook helps a lot in this life situation.
Congrats on putting on your big girl pants, taking responsibility and doing something about it! I agree that once you start paying attention in one area of your life it makes it seem that much easier to do so in other areas of your life. We’ve been paying off debt from our past mistakes for a little over three years and can finally see the light at the end of the tunnel. It’s always so wonderful to hear about others who are winning with money. Thanks for the honest and inspiring post!
Stacie from Not a Guru, Just a Gal blog
Stacie Standifer recently posted..How We Paid off $100k in Debt – Part 1